Can Women Entrepreneurs Truly Thrive in a Male-Dominated Economy?

 

Women's entrepreneurship has emerged as a pivotal driver of economic development and social progress in recent decades. With nearly half the world’s population comprising women, tapping into their entrepreneurial potential is a matter of equality economic necessity. Women-led enterprises significantly contribute to job creation, poverty alleviation, and the growth of Micro, Small and Medium Enterprises (MSMEs), especially in developing economies such as India, China, Malaysia, and Thailand. However, despite considerable advancements, women entrepreneurs continue to face systemic challenges that hinder their full participation in the global economy.

The Growing Landscape of Women Entrepreneurs

Across the globe, women now account for a substantial share of new enterprise formation. Estimates indicate that women are responsible for one-third to one-half of new businesses globally. This participation is sectorally diverse:

Sector	Women’s Participation (%)
Healthcare Services	25
Education	20
Entertainment	15
Administration	10
Food Sector	8
Others	22

These figures illustrate the significant role of women in sectors such as healthcare and education, which are crucial for sustainable development.

Contribution to the Economy

Despite these strides, the overall contribution of women to global Gross Domestic Product (GDP) remains disproportionately low. While women make up nearly 50% of the world population, their contribution to GDP is only around 37%. This gap underscores the underutilization of women’s economic potential.

Moreover, the landscape of technology-based start-ups reveals gender disparities. Out of 1,246 MSME tech start-ups:

·         55.5% were founded solely by men,

·         38.6% were co-founded by men and women,

·         Only 5.9% were solely founded by women.

Such statistics indicate the need for targeted policies to encourage women’s participation in high-growth and technology sectors.

Entrepreneurial Activity and Gender Disparities

The Total Early-stage Entrepreneurial Activity (TEA) is another metric used to assess participation in entrepreneurship:

Gender	TEA (%)
Men	14.9
Women	9.3

The Global Entrepreneurship Monitor (GEM) suggests that women's lower participation stems from fear of failure, lack of support systems, and entrenched gender norms.

Barriers to Entry

A multi-country study involving 17 nations found that women’s lower entrepreneurial activity is linked to socio-cultural factors. These include:

·         Fear of Failure: Women are more likely than men to be discouraged by potential failure.

·         Stereotyping: Societal expectations often discourage women from pursuing careers in business.

·         Lack of Role Models: Few visible women leaders in entrepreneurship contribute to lower motivation.

·         Institutional Gaps: Legal and regulatory systems often lack gender-sensitive frameworks.

Many women-owned MSMEs also remain unregistered due to insufficient turnover and self-employment status. This invisibility further restricts their access to formal credit, subsidies, and government schemes.

Redefining Success

For women entrepreneurs, success is not merely profit-driven. Rather, it often revolves around:

·         Economic Security: Sustained income to support family well-being.

·         Autonomy and Self-Worth: Freedom to make decisions and pursue passions.

·         Social Impact: Creating jobs and uplifting communities.

These parameters highlight the multifaceted contributions of women-led enterprises to national development.

Regional and Cultural Variations

The decision to engage in entrepreneurship also varies by economic development levels. In high-income countries, women may have more access to capital and education, whereas in low-income nations, informal employment and subsistence-level entrepreneurship dominate.

Still, stories of resilience are common. Despite limited studies on cross-cultural women entrepreneurs, global trends indicate an increasing number of women pursuing business dreams despite cultural and institutional hurdles.

Policy Recommendations

To bridge the gender gap in entrepreneurship, the following actions are critical:

1.       Skill Development Programs: Focused training in digital literacy, financial management, and leadership.

2.       Access to Finance: Gender-sensitive credit schemes and venture capital support.

3.       Regulatory Reforms: Simplifying MSME registration processes for informal women-led businesses.

4.       Mentorship Networks: Building women entrepreneur ecosystems for support and inspiration.

5.       Awareness Campaigns: Challenging gender stereotypes in business.

Conclusion

Women entrepreneurs are central to inclusive economic growth. From shaping families to reshaping economies, their contributions extend far beyond financial metrics. Yet, to unlock their full potential, targeted policy interventions and cultural shifts are necessary. As more women break barriers and build businesses, societies globally stand to benefit from more equitable, resilient, and prosperous economies.

References

1.       Global Entrepreneurship Monitor (GEM) Reports, 2023

2.       World Bank. (2022). Women, Business and the Law.

3.       UN Women. (2021). Women’s Economic Empowerment in the Changing World of Work.

4.       MSME Ministry of India Annual Report 2022–2023

5.       The World Economic Forum. (2023). Gender Gap Report